The ongoing US China trade war is now escalating with every passing day with no serious efforts on both ends for a healthy resolution. Trump administration is building up tensions with China over past few months.
Trump has already launched its first major attack of a trade war by approving a $330 million arms sale to Taiwan recently. With top official of Trump administration falling in for an offensive tonality the ongoing trade war affecting other countries seems almost hopeless.
In the most recent speech delivered by Vice President Pence addressing a conservative think tank pointed out that what is required in this ever growing trade war is a US-China reset of relations. Where he attacked China for the alleged for its technological theft, supposedly unfair trade practices, its bullying diplomacy abroad and its crackdown on the rights of ethnic and religious minorities at home, he did not shy away from opening about US approach towards China as a major rival in the era of a “great power competition”
He even boasted about new China policy, which marries economic nationalism with brute hawkishness, “would have been unthinkable coming from the Obama administration,”
One cannot ignore the fact that China leadership has been instrumental in evoking such rebuttal from White House. Chinese counterpart are actively shown their aggression in speeches. Recently, Chinese Foreign Minister Wang Yi said at a news conference stated “We demand the US stop such misguided actions,” as Washington’s harsh words as well as to the trade tensions that have cast “a shadow” over relations.
Wang further stressed, “Two major powers and permanent members of the U.N. Security Council need to, and should, increase communication and cooperation, taking on responsibilities in international society,”
However the tussle on diplomatic and economic level seems ever escalating with Trump’s extreme sanctions based on lopsided approach. “Trump vowed last month to impose levies on all Chinese imports if Beijing refuses to abandon trade practices he considers predatory, including a requirement that U.S. companies surrender trade secrets in return for access to the Chinese market, and the theft of intellectual property from American companies,”
Whereas, “Xi has dug in his heels, pledging to boost domestic industries, increase exports and pour billions of dollars into infrastructure projects.”
Political and Economic analyst hare of the opinion that this is an opening of a “new Cold War” which has the potential not just to disturb US-China economies but also create trade tensions affecting global economies.